BILL NUMBER: SB 933	CHAPTERED  09/07/99

	CHAPTER   352
	FILED WITH SECRETARY OF STATE   SEPTEMBER 7, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 7, 1999
	PASSED THE ASSEMBLY   AUGUST 19, 1999
	PASSED THE SENATE   MAY 27, 1999
	AMENDED IN SENATE   MAY 25, 1999
	AMENDED IN SENATE   APRIL 28, 1999

INTRODUCED BY   Senator Poochigian
   (Coauthors:  Senators Costa, Johannessen, and Leslie)
   (Coauthor:  Assembly Members House, Leach, and Oller)

                        FEBRUARY 25, 1999

   An act to amend Section 70 of the Revenue and Taxation Code,
relating to property taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 933, Poochigian.  Property taxation:  new construction.
   The California Constitution generally limits ad valorem taxes on
real property to 1% of the full cash value of that property.  For
purposes of this limitation, "full cash value" is defined as the
assessor's valuation of real property as shown on the 1975-76 tax
bill under "full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or a change in
ownership has occurred.
   Existing statutory provisions implementing this constitutional
authority define "newly constructed" and "new construction" for those
purposes.
   This bill would provide that the terms "newly constructed" and
"new construction" do not include the improvement, upgrade, or
replacement of an underground storage tank that is required to be
improved, upgraded, or replaced to comply with federal, state, and
local regulations on underground storage tanks.  This bill would also
provide that the reconstruction of an underground storage tank for
these same compliance purposes is to be considered normal maintenance
or repair if, after that reconstruction, the tank is substantially
equivalent to the prior structure in size, utility, and function.
   The bill would take effect immediately as a tax levy.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 70 of the Revenue and Taxation Code is amended
to read:
   70.  (a) "Newly constructed" and "new construction" means:
   (1) Any addition to real property, whether land or improvements
(including fixtures), since the last lien date; and
   (2) Any alteration of land or of any improvement (including
fixtures) since the last lien date that constitutes a major
rehabilitation thereof or that converts the property to a different
use.
   (b) Any rehabilitation, renovation, or modernization that converts
an improvement or fixture to the substantial equivalent of a new
improvement or fixture is a major rehabilitation of that improvement
or fixture.
   (c) Notwithstanding the provisions of subdivisions (a) and (b),
where real property has been damaged or destroyed by misfortune or
calamity, "newly constructed" and "new construction" does not mean
any timely reconstruction of the real property, or portion thereof,
where the property after reconstruction is substantially equivalent
to the property prior to damage or destruction.  Any reconstruction
of real property, or portion thereof, that is not substantially
equivalent to the damaged or destroyed property, shall be deemed to
be new construction and only that portion that exceeds substantially
equivalent reconstruction shall have a new base year value determined
pursuant to Section 110.1.
   (d) (1) Notwithstanding the provisions of subdivisions (a) and
(b), where a structure must be improved to comply with local
ordinances on seismic safety, "newly constructed" and "new
construction" does not mean the portion of reconstruction or
improvement to a structure, constructed of unreinforced masonry
bearing wall construction, necessary to comply with the local
ordinance.  This exclusion shall remain in effect during the first 15
years following that reconstruction or improvement (unless the
property is purchased or changes ownership during that period, in
which case the provisions of Chapter 2 (commencing with Section 60)
of this division shall apply).
   (2) In the sixteenth year following the reconstruction or
improvement referred to in paragraph (1), the assessor shall place on
the roll the current full cash value of the portion of
reconstruction or improvement to the structure that was excluded
pursuant to this subdivision.
   (3) The governing body that enacted the local ordinance shall
issue a certificate of compliance upon the request of the owner who,
pursuant to a notice or permit issued by the governing body that
specified that the reconstruction or improvement is necessary to
comply with a seismic safety ordinance, so reconstructs or improves
his or her structure in accordance with the ordinance.  The
certificate of compliance shall be filed by the property owner with
the county assessor on or before the following April 15.  The
provisions of this subdivision shall not apply to any structure for
which a certificate is not filed.
   (e) (1) Notwithstanding the provisions of subdivisions (a) and
(b), where a tank must be improved, upgraded, or replaced to comply
with federal, state, and local regulations on underground storage
tanks, "newly constructed" and "new construction" does not mean the
improvement, upgrade, or replacement of a tank to meet compliance
standards, and the improvement, upgrade, or replacement shall be
considered to have been performed for the purpose of normal
maintenance and repair.
   (2) Notwithstanding the provisions of subdivisions (a) and (b),
where a structure, or any portion thereof, was reconstructed, as a
consequence of completing work on an underground storage tank to
comply with federal, state, and local regulations on these tanks,
timely reconstruction of the structure shall be considered to have
been performed for the purpose of normal maintenance and repair where
the structure, or portion thereof, after reconstruction is
substantially equivalent to the prior structure in size, utility, and
function.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
